Ingka Group’s EUR 7.5 billion commitment to support the transition to a renewable future

Ingka Investments, the investments arm of Ingka Group, the largest IKEA retailer, commits to an additional EUR 1 billion for investments in innovation and transitional technologies, bringing its total commitment to the renewable energy sector to EUR 7.5 billion by 2030.?? 

The additional EUR 1 billion will go beyond investments in renewable energy production and support the wider energy transition towards a renewable future and phasing out fossil fuels. The investment will focus on innovation and transitional technologies such as energy storage, hydrogen as energy carrier or grid infrastructure. 

“We want to be part of the solution and assemble a better future – for people and the planet. Since 2009 we have invested and committed EUR 4 billion in utility scale renewable energy production, now making us a medium-sized renewable energy company. We have ambitious projects in the pipeline, including many early-stage developments and planned offshore wind projects. This, combined with?our new commitment of 1 BEUR for?innovation and transformation, means we are proud to say we are on our way to becoming a major powerhouse in renewable energy,” says Jesper Brodin, CEO Ingka Group.

The additional investment of EUR 1 billion will be used for investments in innovation and transitional technologies that go beyond investments in renewable energy production and support the wider energy transition, and includes, but are not limited to:  

• Green fuels & chemicals investments: like hydrogen production and green methanol. 
• Storage investments: to support grid integration of renewables and reduce the need for fossil back-up power.
• Early-stage project development investments: offshore wind & solar, both inhouse and in partnerships.  
• Giga project investments: large scale integrated decarbonization schemes, minority stakes and partnerships.
• Value chain related investments: grid infrastructure, solar panel production, blade recycling etc. 

Ingka Group has committed to owning or owns 593 wind turbines, 26 solar parks in 18 countries. Together, this produces circa 4 TWh, equivalent to the annual electricity consumption of about 1.25 million European households. The total production capacity of operational assets under Ingka Investments’ ownership today is 2,254 MW, across 59 assets (12 solar parks, 44 wind farms, one offshore wind project and one grid project).  

The investment arm’s latest investment as part of the EUR 1bn transformation frame was announced yesterday, where the company has agreed to buy a 49 percent stake in next generation Swedish offshore wind projects from OX2. The transaction includes the offshore projects Pleione located east of Gotland and Neptunus located southeast of Skåne with a total capacity of 2.4 GW. The deal is the third offshore investment with?OX2. Previous agreements include Ingka Investments’ acquisitions of a stake in three offshore projects in Finland in June 2023 and in three offshore projects in Sweden in 2022.  

*IKEA is committed to the Paris Agreement and to contribute to limiting the global temperature rise to 1.5°C above pre-industrial levels. IKEA is committed to become climate positive by 2030 by taking action across the IKEA value chain and beyond.?This includes a commitment to halving greenhouse gas (GHS) emissions in absolute terms from the total IKEA value chain by 2030, including emissions reduction, carbon removal and storage.?Read more about the IKEA commitment here.